Sourcing

Office SuppliesSuccess Story: eSourcing

Increased Shareholder Value with eSourcing

The Challenge

Transition Into a Global Function

Between 2005 and 2009, our Office Supplies customer was experiencing declining revenues by more than 20 percent. The procurement team was mandated to transform into a global procurement function. There was also a challenge to change the perception that Procurement was only focused on bottom-line savings, as the Strategic Sourcing department managed less than 10 percent of the organization’s total indirect spend. Lastly, each department had its own way of performing, resulting in many disconnected processes across the organization.

Procurement can serve as the catalyst for positive change when the focus is centered on shareholder value.”

— Senior Director, Strategic Sourcing, Office Supplies

The Solution

Implementation Strategies

Within five months, our Office Supplies customer completely transformed and renovated its procurement department by implementing Iasta SmartSource, Iasta SmartAnalytics, and partnering with Iasta, a Determine Company, Consulting Group to build a global procurement function that allowed for greater leverage and standardization throughout all customer locations. Now, our Office Supplies customer has a fully engaged Spend Information Management System (SIMS) team that allows everyone throughout the organization to communicate in a timely manner and provides support for establishing policies and procedures, allowing the company to sustain savings.

The Results

Breaking New Ground in New Areas

After just 2 years, implemented savings are 116% of four-year target

Procurement department has issued 84 successful RFPs focusing on indirect categories across all business functions.

Current savings implement 6 fiscal quarters ahead of plan

Greater ability to negotiate aggressive pricing contracts

Completed spend analysis on $2.2B in spend

Strategic Sourcing collected contracts for 85% of known suppliers which equates to over 90% of all indirect spend.

Spotlight

Solutions Deployed

SmartSource®

SmartAnalytics®

Consulting Group

Client:

Company Name:

Office Supplies

About the Company:

A leading provider of integrated office products, solutions and services for the workplace, whether for business or at home.

Industry:

Retail

Company Size:

$5-10B

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